Key Takeaways
- Israel’s attack on Iran nuclear facilities sends crude prices soaring, and that has sent shares of oil-related companies higher.
- Fears of a wider Middle East war sent West Texas Intermediate futures up 7% to their highest level since late January. Brent crude prices also took off.
- The news also lifted shares of defense contractors.
Energy company shares jumped along with the price of crude Friday after Israel launched a strike aimed at dismantling Iran’s nuclear weapons program and military leadership. Iran retaliated by sending attack drones against Israel, although Jerusalem said Israel intercepted them.
Although the U.S. denied any involvement, President Donald Trump warned Iran that it faced further assaults if it didn’t agree to a deal to stop its nuclear arms production.
Fears of a wider Middle East war sent West Texas Intermediate futures up 7% to their highest level since late January. Brent crude prices also took off.
Oil-related stocks dominated the list of best performers on the S&P 500, with Diamondback Energy (FANG), Occidental Petroleum (OXY), and Halliburton (HAL) among the big gainers.
Also rising on the turmoil were shares of defense contractors, including Lockheed Martin (LMT) and Northrup Grumman (NOC).
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